Christmas and New Year are a bad time to be a Forex Trading. With the holidays comes market closure and a big drop in volume until the second week in January, but today I managed 4% in 60 minutes with the Crossfire strategy.
If you're subscribed to my Forex Trading YouTube channel you'll know that after new year sees low volume and there wasn't a lot of opportunity to take any great trades. In fact, the markets don't really recover until January 15th.
The first real session took place on 8th January trading the Crossfire strategy at 1 pm UK time. In this session, I trade EUR/CAD, EUR/USD, GBP/CAD and GBP/USD.
Watch The Session Here:
Crossfire is a scalping strategy using the 15m and 2m time frames. My target is a 1:2 risk to reward and managing stop losses properly, rarely do I look at pip values unless I'm working out potential take profit levels.
I'll be honest, I thought there would have been more volume in the market early on in the session. And while it's sometimes tempting to get into a trade I prefer to look at why I should stay out, and today the Wadder Attar indicator was keeping me out of trades owing to the low volume.
The Wadder Attar, despite its weird name, is just a probability stack and is there to confirm your decision. In fact all the indicators are probability stacks and the more stacks we have in our favour, the better the potential trade.
The first trade that piqued my interest was EUR/CAD. Price had moved past the green trend line. The imbalance I marked at the start of the session was less than 9 pips away.
Imbalance is improper price action and occurs during times of market manipulation by financial institutions. This means they have left money on the table and need to collect, so price will always return to this level and mitigate the imbalance.
This imbalance also causes support and resistance, so identifying these areas can give you a picture of where the price may go.
In addition to the imbalance are also areas of previous high and low price action, what I call “areas of interest.”
These areas of interest are simply pivot points and cause support or resistance and gives me additional confirmation about what price may do.
In this case, I looked at the buy, setting my stop loss just below the green trend line. With a 1:2 ratio, the take profit was just below the R2 pivot.
The trade took just under an hour to reach the profit target and the same trade was executed on GBP/CAD, in fact, all 4 pairs were good for the buy using the Crossfire strategy.
I trade this strategy each day of the week, so to keep up to date, subscribe to my YouTube channel and if you have questions just ask.